NEW CRASH

Dominion, Volume 19, Issue 254, 10 July 1926, Page 9

NEW CRASH

HEAVY FALL OF FRANC FINANCIAL CIRCLES EXCITED — NEARING A FATAL FIGURE BV TELTOBATH —PBEBB ASSOCIATION. CoPtbigHt. (Rec. July 9, 7.15 p.m.) Paris, July 8. Considerable excitement has been caused in financial circles owing to a heavy fall of the franc, to 193 to £l. The new crash is reported to be due to the adverse balance-sheet published by the Bank of France, showing that the Government, at the present rate of exchange, is within dangerous proximity of the fatal figure which will end borrowing from the bank, also within the £20,000,000 limit to wliich it is possible to go without further Parliamentary sanction of more inflation.— Aus.-N.Z. Cable. UNCERTAIN POLITICAL SITUATION (Rec. July 9, 9.25 p.m.) Paris, July 8. The fall of the franc reflects the uncertainty of the political situation, the latest development of which is a decision of the Republican Democratic Union Party, commanding 104 votes in the Chamber, to oppose the Government’s financial programme on the ground that it is insufficient to meet the present crisis.—Reuter. DEBT TO ENGLAND FUNDING NEGOTIATIONS London, July 8. The "Morning Post’s” diplomatic correspondent says that negotiations for the funding of France’s debt to England carried on by Mr. Churchill (Chancellor of the Exchequer) and M. Pouvanne (French financial adviser in London) are progressing favourably on the basis of M. Caillaux’s preliminary agreement of August last for £12,500,000 in annual payments. M. Peret later accepted the principle of the Caillaux agreement, so the present” conversations are chieflv as to technical details. Before the end of the month M. Caillaux should be in a position to come to Ixmdon to sign an agreement. —Aus.-N.Z. Cable Assn.